Local December 3, 2012 | 12:43 pm

Brazilian beer giant’s ploy dampens Dominicans’ holidays

Santo Domingo. – The Dominican National Brewery (CND) has been charging as much as 20 pesos more for its Presidente brand since last Wednesday, just months after AmBev’s takeover of the popular beer from the local company, Leon Jimenez.

Moreover, Ambev’s own brand, Brahma had “mysteriously” disappeared for weeks from supermarket shelves and colmados, as drinkers speculated of a looming price jump, just in time for the holidays, when consumption spikes.

Quoted by elnacional.com.do, CND customer service office said its suggested retail prices are 60 pesos for the small; 80 for the medium and 110 for the "jumbo," but the reality is that it sells for as high as 125 pesos, with similar differences on the other sizes.

The argument is that the ITBIS tax is behind the increases, which stems from the recently passed fiscal reform.

Prior to AmBev’s takeover of the CND, its Brahma beer was subsidized to sell at a lower price than Presidente, to gain a better market share.

But the ploy appears to be working into the hands of the country’s numerous rum distillers, as more and more beer drinkers complain that the higher prices will force to turn to the locally-made spirits

0 0 votes
Article Rating
Notify of

Inline Feedbacks
View all comments